Business Service & IT outsourcing for a Leading Global Chemical Company

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Business Service and IT Outsourcing For a Leading Global Chemical Company

Client Challenges

A leading global chemical manufacturer and distributor (Client) with 4 billion USD revenue was facing a steep cost increase from their current service provider for their outsourced services. In addition the current provider did not provide enough flexibility for the client’s changing business demand.
The outsourcing contract covered business service (Finance, Supply Chain, HR, Procurement, Customer Service) and all IT services (SW application as a service, voice & data network, desktop & device Management, help desk , etc.) for 10 locations across NA, Europe, Middle East and Asia.
In the current outsourcing contract the services were defined on a generic level with no clear Service Levels and no clear responsibility definition between client and service provider leaving little room for the client to effectively steer the provider. In addition - all IT Systems of the client were licensed and provided by the current service provider and thus were not portable to a different service provider.
The client asked us for support in defining their future shared service operating model strategy

Our Approach

We provided the tools and frameworks to enable a quick decisions on which shared service to keep in-house vs. to outsource in the future model.
We then helped the client to develop a comprehensive RfP document (approx. 500 pages) in less then 2 months describing all required business and IT services in detail (incl. SLAs, service volumes, preferred pricing model, etc.) as well defining the future IT systems to replace the current landscape provided by the current service provider.
We conducted with the client a comprehensive bidding process among top tier global shared services outsourcing provider and managed the process to ensure a fair and competitive environment.
We provided a comprehensive evaluation methodology and TCO model for the client and helped him to evaluate the bids in a standardized manner and to select the most suitable proposal.

Impact

Selected new service provider and signed letter of intend within less then 6 months from the start of the project
The new service agreement contract provides a total cost saving of more than 50% compared to the client’s expected cost increase by the current service provider.
The new service agreement ensures increased flexibility of the services , clear SLAs and portability of the IT system and thus minimizing potential future lock-in
Trained the client and provided the tools in order for the client to conduct similar future projects on their own

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